Kenyan business leaders are intensifying calls for the government to reduce the cost of doing business, warning that high electricity prices, unpredictable taxes, multiple licences and delayed tax refunds are undermining investment and expansion.
The concerns come as the American Chamber of Commerce (AmCham) warns that Kenya must address persistent business environment challenges to convert more than $600 million (approximately KSh77.5 billion) in US investment pledges and commitments into operational projects.
A status report released after the September 2026 AmCham Business Summit says investors need greater tax and regulatory predictability, faster project implementation and reliable infrastructure before committing long-term capital.
The report proposes a US-Kenya Investment Implementation Taskforce to track commitments, identify obstacles and coordinate government action to accelerate projects.
The investment pledges cover manufacturing, technology, data centres, healthcare, digital skills and other sectors. Among the announced investments are Coca-Cola's $175 million expansion programme, Mars Wrigley's $103 million production-line investment and Digital Realty's $80 million data centre project in Nairobi.
However, AmCham cautions that investment announcements do not automatically translate into actual capital expenditure, jobs or expanded production. Projects require bankable business plans, feasibility studies, reliable financing arrangements and predictable government decisions.
The concerns mirror those raised by chief executives in the Central Bank of Kenya's September 2026 business survey, which polled 600 private-sector firms.
Executives called for lower levies and licence fees, simpler compliance requirements, affordable credit and better coordination between national and county governments. They also identified taxation, regulatory uncertainty and production expenses as major obstacles to business growth.
Manufacturers have separately called for electricity price reductions, faster VAT refunds and the removal of overlapping permits and charges.
Kenya Association of Manufacturers board chair Hitesh Mediratta said multiple licences and levies imposed by different levels of government increase operating expenses and weaken the competitiveness of locally produced goods.
Average business electricity prices between 2023 and 2025 stood at KSh23.70 per kilowatt-hour in Kenya, compared with KSh16.02 in Uganda, KSh12.52 in Tanzania and KSh10.10 in Rwanda.
Manufacturers have also raised concerns over approximately KSh50 billion in verified VAT refunds, arguing that delayed payments tie up working capital that could otherwise support production, wages and expansion.
The government has announced plans to eliminate or reduce 85 levies and pursue reforms expected to save businesses KSh300 million annually through licensing changes. President William Ruto has also outlined plans to increase electricity generation capacity from 3,000 megawatts to 10,000 megawatts.
The pressure comes as Nairobi hosts the final day of Fintech Festival Kenya 2026 at Sarit Centre, bringing together technology companies, investors and financial institutions to explore opportunities in digital finance and innovation.
The gathering highlights the investment potential in Kenya's technology sector, but the wider business debate remains focused on whether the country can provide the operating conditions needed to attract and retain capital.
For Kenya, the challenge is no longer simply announcing investment opportunities. It is reducing the costs, delays and regulatory uncertainty that can prevent investors from turning commitments into factories, infrastructure, technology projects and jobs.
